Since the emergence of Bitcoin in 2009, cryptocurrencies have become widespread. By 2022, the market included at least 10,000 tokens with various properties: well-known mainstream coins like Bitcoin and Ethereum, stablecoins with a value pegged to fiat currencies, meme coins, and various altcoins that power different projects.
Cryptocurrencies provide options for fast and inexpensive money transfers (including cross-border ones), have limited use for payments, and can be used as a store of value if not considering extreme volatility. However, the most common use for cryptocurrencies is speculation: the market has many players, from individuals to hedge funds, aggregating billions of dollars worth of crypto assets.
Crypto enthusiasts promote blockchain-based projects as alternatives to the traditional financial system with no need for intermediaries to hold and transfer one’s funds. Hence, the lack of a regulatory framework is considered a privacy-preserving feature. However, it comes with a price: investors in crypto projects are not protected at all, while the lack of regulation over crypto wallets and transfers made it a tool of choice for all kinds of criminals and money launderers.